While Bristol declared its first elected mayor on Friday, up in the north-east of England, Hartlepool announced it was getting rid of the post that Drummond has held for three terms.

Friday's result flies in the face of David Cameron's push for directly elected individuals, within councils and over policing. It means that the town hall will switch to a leader and committee-style system, with one or more committees made up of elected councillors.

The referendum was triggered by a motion tabled by the 21-strong Labour council group demanding a poll on how the town hall is run.

A total of 7,366 people voted for a system of one or more committees made up of elected councillors, while 5,177 voted to retain a mayor who is elected by voters. The turnout was just 18%.

Hartlepool voters backed the directly elected mayor model in a 2002 referendum. Then a credit controller in a call centre, Drummond beat Labour in the first wave of polls for directly elected mayors outside London, while standing as "H'Angus the Monkey" mascot as a publicity stunt for Hartlepool United football club. Drummond was re-elected in 2005and 2009.

The then Hartlepool MP Peter Mandelson was one of the prime movers behind the campaign to instal a directly elected mayor.

Earlier this year, Labour seized upon local government rules that permit a further referendum on local governance after a 10-year moratorium. The motion was unanimously supported.

Christopher Akers Belcher (corr), leader of the Labour group, said: "I am absolutely delighted with the outcome. It means we will be able to save the local authority money and invest it in frontline services."

The council has 34 members following an all-out election last May which involved the number of council seats reduced from 47 after boundary changes: 21 Labour, three Conservatives, five members of Putting Hartlepool First and five independents, including Drummond.

The mayor will complete his mayoral term in May.

Drummond, who earns £63,000 a year as executive mayor, said that while being "disappointed" both by the result and the low turnout, he remained "philosophical" about the outcome.

"It has been a vote against the mayoral system but it's not clear what people have voted for because we still do not know what the committee system will look like."

Asked what he intended to do next, Drummond said he would look for a new challenge in the future but his priority was continuing his work for Hartlepool: "I will not be taking my foot off the gas before the end of my term," he said.

Akers-Belcher said the council will draw up shadow arrangements in the near future to decide the decision-making committees that will replace the current structure. A council leader will be appointed in May at the annual general meeting.